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China Overseas Drilling Research, Development Strategy In Central Asia

Posted on:2006-04-03Degree:DoctorType:Dissertation
Country:ChinaCandidate:L K MenFull Text:PDF
GTID:1119360182456088Subject:Oil-Gas Well Engineering
Abstract/Summary:PDF Full Text Request
With the standing and rapid development of Chinese economy, the demand of China for oil and gas increases sharply. The conflict between demand and supply is becoming serious. Oil and Gas have become the bottleneck to limit the development of Chinese Economy. Since 1993, China had become the importing Country of energy again. Dependency on importing oil and gas is increasingly. In 2004, the domestic production of oil and gas is 170 million tons, short of 97 million tons. The level of dependence on importing oil is 36%. In 2004, the domestic production of oil and gas is 175 million tons, short of 122 million tons; the level of dependence on importing oil is 41%. This situation is austerely impacting the security of China and more and more. It is estimated that, in 2020, the production of oil and gas in China will be 180 to 200 million tons, short of 250 million to 270 million tons. The level of dependence of oil and gas will be 52% to 60%.In this serious situation, the Sixteenth National Congress of the CPC raises the strategy of going global. Recently a more practical policy of "Energy diplomacy" is brought forward. Only if applying the strategy of going global and participating in the international competition actively, we are able to utilize " double resources and two markets" in the world very well and reduce the limitation of energy demand by China, and guarantee the development of society and economy in an all-around, scientific, and harmonious way. China National Petroleum Corporation (CNPC), carrying out the major policy decision by Chinese government actively, raising a strategic goal of taking the lead in establishing a first-class modern enterprise and an international corporation with characteristic of socialism, speeds up the internationalization. In the meantime, the Engineering and Technical service enterprises of CNPC are following up CNPC international business, and enter into the international market quickly and effectively. But it is needed to take a careful and thorough research how to select strategic area scientifically and correctly, in order to assure performance of the strategy of going global in economic, secure, high-effective and feasible way.Beginning with selecting performance strategy, in this discourse, the writer expatiates on the analysis, research and technical and producing practice on the international business. It also introduces the contents:1. Oil and Gas resource, policy and economy, primary national policies, laws and codes, climates and society.2. The investment and management of local and international oil companies in Central Asia.3. The information about the related contractors and service companies.4. The technical problem on well drilling in Central Asia5. Sino-Kazakhstan Greatwall Drilling Company and development and performance of strategy in Central Asia.6. Addressing the necessity and feasibility to make Sino-Kazakhstan Greatwall Drilling Company as a base strengthening the business in Kazakhstan, then tooccupy the drilling and related service around Caspian area, after that, to expand the business to all the area in Central Asia, finally to achieve the goal to link the Central Asia and Middle East togetherIn the discourse, it states the following opinions, ideas and recommendations as well:1. That Central Asia shall be the first strategic selection of CNPC in Oil and Gas business based on the research and study of oil and gas resource, development cost, security of nation, and development strategy.2. According to the strategy of going global of China and CNPC, and exerting the integral advantage of CNPC. Focus on CNPC investment, the investing company of CNPC and Engineering and Technical Service Company have to work together and support each other. Especially, Engineering and Technical Service Company shall have the idea of integrated interest of whole Nation. Engineering and Technical Service Company shall establish the idea to guarantee the effective and rapid development of overseas business of CNPC.3. With regard to the numbers of difficult technical problems in drilling well which delay the growth of oil and gas industry in Central Asia, working together with the domestic research center, such as the State Key Lab in Southeast Petroleum Institute, Chinese Engineering and Technical Service Company masters and have a complete and effective technical system and specification to deal with the variety of drilling problem. Meanwhile, the facts prove that the related experiment and application and performance in Kenkijak, Zhanazhol, and North Buzachi are very successful. For instance, in Kenkijak, according the drilling history of former Soviet Union and Kazakhstan, from 1971 to 1990, 42 wells with different purpose were drilled, but only 2 wells succeeded. Regarding to the drilling circle, one extreme example is that one well was drilled about 4 years. The drilling cost per well was used to be 7.5 million US dollars. Average of Production is about 50 to 60 tons per day each well. However, Chinese Engineering and Technical Service Company has drilled 25 wells in this area with 100% success. The average of drilling circle is shortened from previous 31 months to 6 to 8 months. Drilling cost per well is about 4 million US dollars. Average of Production is above from one hundred to several hundreds tons per day each well. Well No. 8010 creates a record of producing 1143 tons per day. The great achievement makes Sino-Kazakhstan Greatwall Drilling Company hold an advantage in technology in comparison with other local and foreign contractors.On the basis of summarizing the growth of Sino-Kazakhstan Greatwall Drilling Company systematically, according to strategic requirement of rooting itself in Kazakhstan, occupying the Caspian Area, then linking the central Asia and Middle East, the writer raises the ideas on development and performance in Strategic Area mentioned in this paper:1. Strengthening business in Kazakhstan, expanding business in Caspian Area, marching to Central Asia, building up branches in every oil fields, Central Asia, becoming a contractor - a competitive and powerful drilling groups company toable to compete with international Contractor.2. Through above mentioned drilling groups company to achieve, guide and control the drilling market in Central Asia.3. Providing necessary support and protection to achieve the strategy of nation to utilize the oil and gas in Central Asia.4. Owning the capability to provide service to giant international oil companies, and extending business to Caspian, Middle East, and Russia.In order to achieve the above ideas and policies, the writer specifies the detailed plan and tactics how to realize them:1. How to coordinate the domestic drilling contractors and use one brand of GWDC to provide service in the world, preventing from internal completion.2. Converting the ideas, improving and deepening the reform of administration, making use of domestic human and international resources3. Applying the precious technical resources in China, preserving necessary competitive position of technology.4. Reforming idea of management, carrying out strategy of honor and faith to provide good quality service to clients.5. Providing reliable evidence and instruction for our drilling operation in Central Asia and exerting a good play.
Keywords/Search Tags:Overseas, Petroleum, Drilling, Contracting, Service Central Asia, Strategy of Development
PDF Full Text Request
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